By Express press service

BHUBANESWAR: Chhattisgarh hydropower sale at subsidized rate amid interstate dispute over Mahanadi water sharing that rocked Assembly last year featured prominently in public hearing on revenue requirement (ARR) and Odisha Hydro Power Corporation (OHPC) Tariff Application.

Most opponents took issue with the OHPC’s argument that the cost of electricity sold to the neighboring state was not factored into the aggregate revenue requirement and rate applications for 2022-23. They urged the Odisha State Electricity Regulatory Commission (OERC) to take this into account when determining the tariff for the next fiscal year. The sale of 5 MW of power from the Hirakud Hydropower Project to Chhattisgarh State Power Development Corporation Limited (CSPDCL) was not reflected in the ARR for 2022-23.

Objecting to the OHPC’s assertion that if the cost of electricity sold to the Chhattisgarh utility is taken into account in the ARR, it is required to increase the hydro tariff with an effect Therefore on the wholesale supply price (BSP), opponents argued that the electricity sold to Chhattisgarh cannot be kept outside the scope of the ARR approved by the OERC.

Since electricity is sold to CSPDCL at a higher rate than the rate determined for Gridco, the state’s main electricity supplier, the ARR for OHPC should be reduced. Moreover, the OHPC cannot keep the sale of electricity to CSPDCL outside the jurisdiction of the ARR because it is the base tariff revenue of the petitioner and the stakeholders deserve to be informed of the transaction.

Opponents urged the commission that the cost of state government assistance to OHPC be considered when determining CSPDCL’s tariff for the 5 MW power supply. Grants and concessions given by the state government to the Hirakud project cannot be passed on to CSPDCL, especially as Odisha is in a legal entanglement with Chhattisgarh over the Mahanadi water dispute. The tariff applicable for the sale of electricity to the CSPDCL may not be lower than the average wholesale supply price determined for the distribution companies.